ISLAMABAD: Pakistan’s oil industry has firmly opposed the unilateral enforcement of a 6–12 month deadline for complete digital integration of more than 32,000 ground tanks, depots, oil tankers, and petrol pumps nationwide, citing the absence of a viable mechanism to recover an estimated Rs55 billion implementation cost.
In a formal communication to the Oil & Gas Regulatory Authority (Ogra) and the Petroleum Division, the Oil Companies’ Advisory Council (OCAC)—representing over three dozen oil firms and refineries—flagged serious technical and financial hurdles, terming the regulator’s directives “dictatorial” and unworkable within the set timelines. The Oil Marketing Association of Pakistan (OMAP), representing smaller firms, voiced similar concerns.
According to industry executives, Ogra Chairman Masroor Khan warned CEOs of Oil Marketing Companies (OMCs) of punitive action if 600 facilities were not digitally integrated by Jan 31, 2026, with full integration by Jan 31, 2027. The plan also requires digital tracking of all 16,000 retail pumps by June 2026 under the Auto Tank Gauging (ATG) system, linking every litre of fuel to a central dashboard.
Industry representatives said they were not allowed to present ground realities during the meeting, with the chairman insisting that the Prime Minister’s digitalisation vision must be implemented without delay.
Later, a joint OCAC–OMAP delegation met Petroleum Minister Ali Pervaiz Malik to register their concerns. The minister directed Ogra to revisit industry challenges and work towards a mutually viable solution.
While reaffirming support for digital integration, the industry stressed that the required hardware is not readily available and would demand significant design, manufacturing, and installation lead times. With stagnant OMC margins for two years and substantial payments already made to Ogra and PITB for the Track & Trace System—with no visible progress—the industry warned that absorbing an additional Rs55–60bn was untenable.
In a strongly worded letter, OCAC said the meeting “proceeded largely as a monologue” and reiterated the need for a phased implementation timeline and a clear cost-recovery framework. It emphasised that ATG systems are capital-intensive and customised for each facility, requiring a realistic rollout period of at least five years.
Industry leaders concluded that the current approach could jeopardise sector stability, asking whether the regulator intended to “push companies toward bankruptcy” by enforcing impractical deadlines without financial support.
Story by Khaleeq Kiani
